This is a service specifically targeted at the needs of busy non-executive directors. We aim to give you a “heads up” on the things that matter for NEDs in the week ahead - all in two minutes or less.
In this Edition, the first for 2021, we consider CGI Glass Lewis’ proxy voting guidelines for the new year, the Joint Parliamentary Committee’s report on litigation funding and ASIC reports on COVID-19 and audit-related matters. We also look ahead at what President Biden’s inauguration this may mean for the United States, and the broader global economy.
GOVERNANCE
Updated proxy voting guidelines released by CGI Glass Lewis. 2021 Proxy Voting Policy Guidelines for Australia
Parliamentary committee report on litigation funding. Parliamentary Joint Committee’s report
REGULATION
ASIC and IOSCO report on retail market conduct issues arising from COVID-19. Retail Market Conduct Task Force Report: Initial Findings and Observations about the impact of COVID-19 on Retail Market Conduct media release
ASIC reports on audit inspection findings for 12 months to 30 June 2020. media release
Easing the regulatory burden on charities. media release
LEGAL
Expiration of ASIC relief for capital raisings during COVID-19. The first quarter of 2021 will see a number of temporary initiatives and reforms announced throughout 2020 in response to COVID-19 begin to expire. For example, the ASIC relief enabling entities to make certain low doc offers to investors even if they did not meet all of the usual requirements expired on 1 January 2021. Consequently, companies will now need to meet all relevant requirements under the Corporations Act and relevant ASIC instruments to make offers under the low doc regime.
FIRB reforms take effect. Security of Critical Infrastructure Act 2018 exposure draft article
Corporate insolvency reform legislation receives Royal Assent. Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) media release
Clarity on the retrospective impact of whistleblower amendments. Alexiou v Australia and New Zealand Banking Group Limited [2020] FCA 1777 Corporations Act
OVER THE HORIZON
ASIC highlights focus areas for 31 December 2020 financial reports under COVID-19 conditions. media release
Inauguration of 46th President of the United States. With the inauguration of the 46th US President, Joe Biden, the probability of a more stable approach to the economy and foreign affairs will buoy markets and provide encouragement to those with businesses or investments in the US, thanks to the promise of big stimulus packages and a more pragmatic style of government. It remains to be seen the extent to which Biden is willing and able to repair relations with China and whether this will enable greater alignment between Western economies and China. With Brexit also offering the potential for a reset of bilateral trade arrangements, 2021 looms as a potential pivotal year for Australian foreign relations.